Brookdale Senior Living upgraded to Outperform from Sector Perform at RBC

RBC Capital upgraded Brookdale Senior Living to Outperform from Sector Perform with a price target of $9, up from $7. The analyst says improving fundamentals and favorable supply and demand characteristics are expected to persist for the next several years. Brookdale has an underappreciated pathway to margin expansion given strong RevPAR growth and moderating operating expense growth, the analyst tells investors in a research note. The firm believes interest rate risk is manageable with improving fundamentals driving positive adjusted free cash flow next year.